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9/13/01
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City

Hoosiers panic over gas scare

By Heather Mangold
City Editor

Floods of motorists rushed to gas stations to buy gas in an unnecessary panic on Tuesday, according to Indiana officials and gasoline industry specialists.

Greg Seiter, spokesperson for AAA Hoosier Motor Club, said panicked drivers were unwarranted in their concerns.

"The necessity for that was simply not there," said Seiter. "We don't anticipate any shortage."

Seiter said that the national average cost for regular unleaded gasoline only fluctuated by one cent Tuesday, rising from $1.52 per gallon to $1.53. In Indiana specifically, prices rose by less than a cent going from an average of $1.620 to $1.629 a gallon, according to the AAA fuel gauge report.

Around campus on Tuesday, gas stations had ranging gasoline prices from $1.60 to $1.99 with cars lining up on the streets.

"It's very important to help people understand not to rush out and horde gasoline like they did," said Seiter. "In doing that people will create a temporary gas shortage because service stations just aren't prepared for that kind of rush."

Seiter said that some station owners throughout Indiana were assuming that there would be a gasoline shortage or a pipeline disruption causing dramatic changes in the market. However, he said this is not the case.

"I need to emphasize that there's no gasoline shortage," said Seiter.

Rep. Sheila Klinker, D-27th, said she thinks the government should go after those station owners who raised prices.

"I heard that they were going to go after any gasoline stations that were gouging," said Klinker. "I think that they've been warned."

Attorney General Steve Carter did just that. He released a statement on Tuesday that said, "I caution businesses not to take advantage of consumers in this time of grief and fear. I have authority and will critically review any and all complaints of improper and quite frankly, unbelievable behavior by anyone taking advantage of this terrible situation for economic gain by collusion or price fixing."

Klinker agreed that she was astounded by anyone who could take advantage in such a way.

Gov. O'Bannon's office released a report on Wednesday stating that the State Department of Revenue randomly checked roughly 70 stations across Indiana in an attempt to stop price gouging. The department found that most did not raise their prices substantially.

However, the few that did raise their prices did so dramatically.

According to the State Department of Revenue, a few stations hiked prices considerably. The highest price found by the department was $4.99 a gallon.

"The events of Tuesday touched the emotions of all of us, and it's wrong for retailers to take advantage of people's heightened sensitivity and fear," said O'Bannon in his statement. "I've asked Attorney General Carter to do whatever he can — including bringing legal action, if necessary — to make sure that Hoosiers aren't being treated unfairly."

Rep. Sue Scholer, R-26th, said she was pleased with Carter's efforts to stop the panic.

"One of the important things for us to do is to continue to function as a country," said Scholer. "I'm sorry that people panicked."

 

 

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City editor:
Heather Mangold

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Purdue Exponent 2001